An Alberta judge has rejected a First Nation’s bid for a judicial review aimed at overseeing the program responsible for ensuring coal mine and oilsands operators have adequate funds for site reclamation. Justice Shannon Davis of the Court of King’s Bench of Alberta ruled on Wednesday that the application for a review was dismissed due to the Athabasca Chipewyan First Nation (ACFN) failing to provide legal notice to all relevant parties within the mandated six-month timeframe.
The ACFN had served notice only to the Alberta government, viewing the issue as centered on the Crown’s duty to engage in consultations. However, Canadian Natural Resources, Suncor Energy, and Imperial Oil argued that they should have also been served as they would be directly impacted by any changes to the program. Justice Davis sided with the companies during the hearing in Fort McMurray, emphasizing the strict and inflexible nature of the six-month deadline for filing and serving an originating application.
The ACFN had contested Alberta’s Mine Financial Security Program (MFSP), which mandates that oilsands and coal mine operators possess the financial capacity to cover reclamation expenses upon closure. Instead of requiring the full cleanup costs upfront, the program allows oilsands operators to utilize an “asset-to-liability” method, enabling them to use company assets as collateral against future closure expenses if assets exceed liabilities by threefold.
According to the Alberta Energy Regulator, as of June 30, 2025, liabilities stood at $52.7 billion, while the MFSP had amassed $2.6 billion in securities since its inception in 2011. The reported asset value under the MFSP was $683 billion. Alberta initiated a review of the program in 2022, and during consultations, the ACFN criticized the MFSP’s management, citing past reports from the auditor general that were critical of the program.
Among the ACFN’s concerns were allegations that the program underestimates operators’ liabilities, overlooks shifts in global oil markets that could accelerate closures, and fails to encourage reclamation efforts throughout a mine’s lifespan. The MFSP was reissued in October 2024 and subsequently updated in December of the same year. The ACFN believed their concerns were disregarded, prompting them to file for a judicial review in April 2025.
Ecojustice, an environmental law organization, represented the ACFN in this matter. Ecojustice lawyer Susanne Calabrese expressed disappointment at the court’s dismissal, highlighting that the organization is exploring further legal options. She noted that the court did not address the ACFN’s concerns.
The ACFN upholds its stance that Alberta has not fulfilled its constitutional obligations to ensure proper reclamation of oilsands mines on their traditional lands, asserting that the MFSP falls short in guaranteeing the restoration of ACFN’s territories. They emphasize that reclamation is not solely an environmental issue but also a concern for taxpayers, human rights, and Indigenous rights, urging all Albertans to take notice.
A spokesperson for Alberta’s Ministry of Environment and Protected Areas stated that the province is reviewing the ruling. Legal representatives for Suncor, Canadian Natural Resources, and Imperial Oil did not provide comments in response to inquiries.